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Registration number: 00434787

Walter Frank & Sons Limited

Annual Report and Financial Statements

for the Year Ended 30 June 2023

 

Walter Frank & Sons Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Profit and Loss Account and Statement of Retained Earnings

11

Balance Sheet

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 25

 

Walter Frank & Sons Limited

Company Information

Directors

Mr Michael James Richards

Mr James Michael Salisbury

Mr Robert John Salisbury

Registered office

Doulton Road
Cradley Heath
West Midlands
B64 5QS

Auditors

Walker Hubble
5 Parsons Street
Dudley
West Midlands
DY1 1JJ

 

Walter Frank & Sons Limited

Strategic Report for the Year Ended 30 June 2023

The directors present their strategic report for the year ended 30 June 2023.

Principal activity

The principal activity of the company is the manufacture of engineered castings and fire fighting equipment.

Fair review of the business

The financial year ended 30 June 2023 was a challenging one with the Company experiencing a reduction in EBITDA compared to the prior year. The repercussions from Covid 19's impact on the global economy was still having a detrimental impact on revenue as there was an absence of long-term capital projects which utilise the Company's valves, in particular the PRV9i. This lack of project work saw revenues fall by 9% compared to the prior year. Although the prior year was also impacted by Covid 19, it did still benefit from some residual work and one particularly lucrative contract had a material positive impact on that year's profit performance.

The Directors expect that the forthcoming financial year will see an improvement in the Company's trading as the general economic situation improves.The sales teams are able to attend several exhibitions during the year as travel restrictions were lifted and this should be beneficial in winning new work. The value of orders received for the year was 8% higher than the output value and intake in the second half of the year was greater than the first half pointing towards an improving trajectory.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£

2,456,580

2,676,177

Turnover per employee

£

153,536

95,578

Gross Profit

£

674,325

987,582

Gross Profit %

%

27

37

EBITDA (before exceptional items)

£

4,864

336,153

EBITDA %

%

1

13

 

Walter Frank & Sons Limited

Strategic Report for the Year Ended 30 June 2023 (continued)

Principal risks and uncertainties

The management continually monitor the key risks facing the business as well as assessing the controls used for managing these risks.

The Company's demand is influenced by external factors within the marketplaces it serves. For example demand within the oil and gas market, one of the markets the business serves, is materially linked to the price of oil, which fluctuates for lots of reasons including geo-political factors. The business adopts a diversified approach serving different geographical and industry markets which manages the risk of exposure to demand fluctuations in one specific market.

A significant proportion of the Company's turnover is to export markets. Fluctuating exchange rates therefore provide the business with competitive advantages and disadvantages depending upon the relative strength of the pound. This area of risk is also managed through appropriate use of exchange rate hedging strategies.

The metal content of the Company's product expose it to fluctuations in metal prices. The Company manages this by purchasing strategies and sales contracts linked to metal prices.

The Company's operations involve typical health and safety hazards inherent in manufacturing and business operations. The Company is subject to numerous laws and regulations relating to health and safety around the world. Hazards are managed by attending training courses, carrying out risk assessments, introducing appropriate controls and monitoring activity.

Approved and authorised by the Board on 20 February 2024 and signed on its behalf by:
 

.........................................
Mr Michael James Richards
Director

 

Walter Frank & Sons Limited

Directors' Report for the Year Ended 30 June 2023

The directors present their report and the financial statements for the year ended 30 June 2023.

Directors of the company

The directors who held office during the year were as follows:

Mr Michael James Richards

Mr James Michael Salisbury

Mr Robert John Salisbury

Financial instruments

Objectives and policies

The company's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the company's policies approved by the board of directors, which provide written principles on the use of financial derivatives to manage these risks. The company does not use financial instruments for speculative purposes.

Price risk, credit risk, liquidity risk and cash flow risk

Price risk:
The company is exposed to commodity price risk. The company manages its exposure to commodity price risk where it is considered financially appropriate, presently this is only in respect of metal purchasing.

Credit risk:
The company's principle financial assets are bank balances and cash, trade and other receivables.
The company's credit risk is primarily attributed to trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in recoverability of cash flows.
The company has no significant concentration of credit risk, with exposure spread over a large number of customers.

Liquidity risk:
The company has funded and intends to continue funding its ongoing operations and future development through cash generated from operating activities and secured bank borrowings.

Cash flow risk:
The company is not significantly exposed to financial risk of foreign currency exchange rates. Interest bearing assets are held at fixed rates to ensure certainty of cash flows.

Environmental matters

We have considered the recommendations of the Financial Stability Board's Task Force on Climate-related Financial Disclosures (TCFD) when preparing this report.These recommendations encourage businesses to increase disclosure of climate related information, with an emphasis on financial disclosure. The Company considers respect for the environment as a core value of the Company. The Company has an approved environmental policy which sets out the guiding principles which it must adopt and observe. Under the policy the Company pursues clear strategic goals, taking into account the available technologies and resources, with the aim of progressively improving environmental performance.

 

Walter Frank & Sons Limited

Directors' Report for the Year Ended 30 June 2023 (continued)

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Walker Hubble are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the Board on 20 February 2024 and signed on its behalf by:
 

.........................................
Mr Michael James Richards
Director

 

Walter Frank & Sons Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Walter Frank & Sons Limited

Independent Auditor's Report to the Members of Walter Frank & Sons Limited

Opinion

We have audited the financial statements of Walter Frank & Sons Limited (the 'company') for the year ended 30 June 2023, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 June 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

Walter Frank & Sons Limited

Independent Auditor's Report to the Members of Walter Frank & Sons Limited (continued)

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

We identified and assessed the risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations. Our procedures included enquiry of management and performing analytical review procedures to identify any unusual relationships that may indicate a material misstatement. We also tested the appropriateness of journals to address the risk of fraud through management override of controls. We performed testing in respect of the risk of fraud in revenue recognition through a review of margins, sales cut off procedures and by performing existence and valuation testing on trade debtors.

Relevant laws and regulations, together with potential fraud risks, were communicated to the audit engagement team at the planning stage to ensure they remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

Walter Frank & Sons Limited

Independent Auditor's Report to the Members of Walter Frank & Sons Limited (continued)

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

Walter Frank & Sons Limited

Independent Auditor's Report to the Members of Walter Frank & Sons Limited (continued)

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Gavin Richard Pearson FCCA (Senior Statutory Auditor)
For and on behalf of Walker Hubble, Statutory Auditor

5 Parsons Street
Dudley
West Midlands
DY1 1JJ

20 February 2024

 

Walter Frank & Sons Limited

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 30 June 2023

Note

2023
£

2022
£

Turnover

3

2,456,580

2,676,177

Cost of sales

 

(1,782,255)

(1,688,595)

Gross profit

 

674,325

987,582

Administrative expenses

 

(720,063)

(702,030)

Operating (loss)/profit

4

(45,738)

285,552

Other interest receivable and similar income

6

60

-

Interest payable and similar charges

7

(2,180)

852

 

(2,120)

852

(Loss)/profit before tax

 

(47,858)

286,404

Taxation

11

50,433

5,848

Profit for the financial year

 

2,575

292,252

Retained earnings brought forward

 

1,541,891

1,249,639

Retained earnings carried forward

 

1,544,466

1,541,891

 

Walter Frank & Sons Limited

(Registration number: 00434787)
Balance Sheet as at 30 June 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

12

32,244

38,681

Tangible assets

13

156,819

172,494

 

189,063

211,175

Current assets

 

Stocks

14

978,729

1,071,958

Debtors

15

508,580

3,257,729

Cash at bank and in hand

 

353,457

244,711

 

1,840,766

4,574,398

Creditors: Amounts falling due within one year

17

(442,019)

(3,198,360)

Net current assets

 

1,398,747

1,376,038

Total assets less current liabilities

 

1,587,810

1,587,213

Provisions for liabilities

18

(27,444)

(29,422)

Net assets

 

1,560,366

1,557,791

Capital and reserves

 

Called up share capital

15,900

15,900

Retained earnings

1,544,466

1,541,891

Shareholders' funds

 

1,560,366

1,557,791

Approved and authorised by the Board on 20 February 2024 and signed on its behalf by:
 

.........................................
Mr James Michael Salisbury
Director

 

Walter Frank & Sons Limited

Statement of Cash Flows for the Year Ended 30 June 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

2,575

292,252

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

52,722

49,749

Finance income

6

(60)

-

Income tax expense

11

(50,433)

(5,848)

 

4,804

336,153

Working capital adjustments

 

Decrease/(increase) in stocks

14

93,229

(238,626)

Decrease/(increase) in trade debtors

15

2,797,604

(894,738)

(Decrease)/increase in trade creditors

17

(2,756,342)

399,801

Cash generated from operations

 

139,295

(397,410)

Income taxes received

11

-

51,245

Net cash flow from operating activities

 

139,295

(346,165)

Cash flows from investing activities

 

Interest received

6

60

-

Acquisitions of tangible assets

(25,067)

(3,006)

Acquisition of intangible assets

12

(5,542)

(31,556)

Net cash flows from investing activities

 

(30,549)

(34,562)

Net increase/(decrease) in cash and cash equivalents

 

108,746

(380,727)

Cash and cash equivalents at 1 July

 

244,711

625,438

Cash and cash equivalents at 30 June

 

353,457

244,711

 

Walter Frank & Sons Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Doulton Road
Cradley Heath
West Midlands
B64 5QS

The principal place of business is:
Gladstone Works
St Peg Lane
Cleckheaton
West Yorkshire
BD19 3SL

These financial statements were authorised for issue by the Board on 20 February 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Government grants

Government Grants are credited to the Statement of Profit and Loss and Other Comprehensive Income in the financial period in which they have been received so as to match them with the expenditure to which they relate.

 

Walter Frank & Sons Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

2

Accounting policies (continued)

Foreign currency transactions and balances

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the date of transactions. All differences are taken to the Statement of Income and Retained Earnings Account.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

over 5 to 10 years straight line

Fixtures and fittings

over 3 to 10 years straight line

Motor vehicles

over 4 years straight line

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

 

Walter Frank & Sons Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

2

Accounting policies (continued)

Asset class

Amortisation method and rate

Patents

Amortisation is calculated to write off the cost in equal instalments over their estimated useful life of 5 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Walter Frank & Sons Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

2

Accounting policies (continued)

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
 Recognition and measurement
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
 Impairment
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reported end date.
Financial guarantee contracts
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price and subsequently carried at amortisation cost, using the effective interest rate method. Financial liabilities classified as payable within one year are not amortised.

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

2,456,580

2,676,177

The analysis of the company's Turnover for the year by market is as follows:

2023
£

2022
£

UK

1,655,935

1,601,148

Europe

280,472

177,659

Rest of world

520,173

897,370

2,456,580

2,676,177

 

Walter Frank & Sons Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

4

Operating (loss)/profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

40,743

40,184

Amortisation expense

11,979

9,565

Operating lease expense - property

28,000

27,000

Operating lease expense - plant and machinery

8,220

4,068

5

Government grants

Government Grants are credited to the Statement of Profit or Loss and Other Comprehensive Income in the financial period in which they have been received so as to match them with the expenditure to which they relate.

The amount of grants recognised in the financial statements was £Nil (2022 - £Nil).

6

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

60

-

7

Interest payable and similar expenses

2023
£

2022
£

Foreign exchange gains/(losses)

2,180

(852)

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

839,641

846,530

Social security costs

74,945

76,600

Pension costs, defined contribution scheme

42,207

48,988

Other employee expense

22,795

9,554

979,588

981,672

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

 

Walter Frank & Sons Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

8

Staff costs (continued)

2023
No.

2022
No.

Production

13

20

Administration and support

3

8

16

28

9

Directors' remuneration

There has been no directors remuneration included in the financial statements for this year or the previous year, the remuneration of the directors is disclosed in the financial statements of the ultimate controlling party Musgrave Holdings Limited.

10

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

5,900

5,600

Other fees to auditors

Taxation compliance services

1,630

1,560

All other assurance services

3,775

2,492

5,405

4,052


 

 

Walter Frank & Sons Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

11

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

(48,455)

(329)

Deferred taxation

Arising from origination and reversal of timing differences

(1,978)

(4,195)

Arising from changes in tax rates and laws

-

(1,324)

Total deferred taxation

(1,978)

(5,519)

Tax receipt in the income statement

(50,433)

(5,848)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 20.5% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

(Loss)/profit before tax

(47,858)

286,404

Corporation tax at standard rate

(9,809)

54,417

Decrease from effect of different UK tax rates on some earnings

(356)

-

Effect of revenues exempt from taxation

(119,341)

(103,301)

Effect of expense not deductible in determining taxable profit (tax loss)

53,345

45,018

Effect of tax losses

74,183

-

Deferred tax credit relating to changes in tax rates or laws

-

(1,324)

Tax decrease from effect of adjustment in research and development tax credit

(48,455)

(658)

Total tax credit

(50,433)

(5,848)

 

Walter Frank & Sons Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

12

Intangible assets

Trademarks, patents and licenses
 £

Total
£

Cost or valuation

At 1 July 2022

77,802

77,802

Additions acquired separately

5,542

5,542

At 30 June 2023

83,344

83,344

Amortisation

At 1 July 2022

39,121

39,121

Amortisation charge

11,979

11,979

At 30 June 2023

51,100

51,100

Carrying amount

At 30 June 2023

32,244

32,244

At 30 June 2022

38,681

38,681

13

Tangible assets

Fixtures and fittings
£

Plant and machinery
£

Total
£

Cost or valuation

At 1 July 2022

3,548

457,798

461,346

Additions

-

25,067

25,067

At 30 June 2023

3,548

482,865

486,413

Depreciation

At 1 July 2022

3,548

285,304

288,852

Charge for the year

-

40,742

40,742

At 30 June 2023

3,548

326,046

329,594

Carrying amount

At 30 June 2023

-

156,819

156,819

At 30 June 2022

-

172,494

172,494

 

Walter Frank & Sons Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

14

Stocks

2023
£

2022
£

Raw materials and consumables

146,152

128,973

Work in progress

51,911

99,087

Finished goods and goods for resale

780,666

843,898

978,729

1,071,958

15

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

415,158

543,201

Amounts owed by related parties

23

-

2,670,201

Other debtors

 

287

4,420

Prepayments

 

44,680

39,907

Income tax asset

11

48,455

-

   

508,580

3,257,729

16

Cash and cash equivalents

2023
£

2022
£

Cash at bank

353,457

244,711

 

Walter Frank & Sons Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

17

Creditors

Note

2023
£

2022
£

Due within one year

 

Trade creditors

 

170,009

198,557

Amounts due to related parties

23

149,744

2,856,943

Social security and other taxes

 

66,843

83,664

Outstanding defined contribution pension costs

 

3,384

3,120

Other payables

 

7,528

12,760

Accruals

 

44,511

43,316

 

442,019

3,198,360

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 July 2022

29,422

29,422

Increase (decrease) in existing provisions

(1,978)

(1,978)

At 30 June 2023

27,444

27,444

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £42,207 (2022 - £48,988).

Contributions totalling £3,384 (2022 - £3,120) were payable to the scheme at the end of the year and are included in creditors.

 

Walter Frank & Sons Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

20

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary Shares of £1 each

15,900

15,900

15,900

15,900

         

21

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

28,000

27,000

Later than one year and not later than five years

81,667

81,000

109,667

108,000

The amount of non-cancellable operating lease payments recognised as an expense during the year was £36,220 (2022 - £31,068).

 

Walter Frank & Sons Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

22

Commitments

Capital commitments

The company's development plans call for capital expenditure to enhance production capability and capacity.
The total amount contracted for but not provided in the financial statements was £25,000 (2022 - £Nil).

23

Related party transactions

Summary of transactions with parent

The company has taken advantage of the exemption in FRS 102 "Related Party Disclosures" from disclosing transactions with its parent company.
 

Summary of transactions with subsidiaries

The company has taken advantage of the exemption in FRS 102 "Related Party Disclosures" from disclosing transactions with fellow subsidiary companies.
 

24

Parent and ultimate parent undertaking

The company's immediate parent is Westley Group Limited, incorporated in England.

 The ultimate parent is Musgrave Holdings Limited, incorporated in England.

  These financial statements are available upon request from
Doulton Road
Cradley Heath
West Midlands
B64 5QS